GM Financial Reports $487 Million in Third-Quarter Net Income
General Motors Financial Company reported net income of $487 million for the third quarter ended September 30, 2026, reflecting a decline from the $589 million recorded during the same period in 2025. The company also reported lower earnings for the first nine months of 2026, as net income reached $1.4 billion compared with $1.6 billion during the corresponding period last year.
The financial results highlight changes in GM Financial’s lending activities, vehicle leasing operations, commercial financing portfolio, and credit performance. While retail loan originations increased compared with the previous year, operating lease originations declined. The company also reported higher delinquency rates and increased annualized net charge-offs, indicating changes in the performance of its retail finance portfolio.
Despite these developments, GM Financial maintained substantial available liquidity of $28.0 billion at the end of the third quarter. This liquidity position provides the company with access to cash and multiple borrowing facilities to support its financing activities and broader business operations.
GM Financial is the financial services subsidiary associated with General Motors. Its business includes retail vehicle financing, commercial financing, and vehicle leasing. The company’s results are closely connected to vehicle sales, consumer demand for automotive credit, leasing activity, and the performance of customers repaying their loans.
Net Income Declines in the Third Quarter
GM Financial’s net income for the third quarter of 2026 was $487 million, down from $589 million in the third quarter of 2025. This represents a decrease of approximately 17.3% year over year.
For the nine months ended September 30, 2026, net income totaled $1.4 billion, compared with $1.6 billion during the first nine months of 2025. Based on the reported rounded figures, this represents a decline of approximately 12.5%.
The reduction in earnings occurred alongside growth in retail loan originations and outstanding retail finance receivables. However, the company’s operating lease originations declined compared with the previous year, while delinquency rates and net charge-offs increased.
These figures provide an overview of the company’s financial performance during the reporting period. However, the figures provided do not establish the specific causes of the earnings decline. A more detailed assessment would require additional information about financing margins, funding costs, provisions for credit losses, expenses, and other income statement items.
The results illustrate the importance of balancing portfolio growth with credit quality and profitability. For an automotive finance company, increasing the number or value of loans does not necessarily translate into higher earnings if credit costs, funding expenses, or other operating costs rise.
Retail Loan Originations Remain Strong
Retail lending continued to represent an important part of GM Financial’s business during the third quarter.
The company originated $9.9 billion in retail loans during the quarter ended September 30, 2026. This was slightly below the $10.0 billion recorded in the second quarter of 2026 but significantly above the $8.8 billion reported in the third quarter of 2025.
Compared with the previous year, quarterly retail loan originations increased by approximately 12.5%. The increase indicates that GM Financial originated a greater value of retail financing during the latest quarter than it did during the same period a year earlier.
For the first nine months of 2026, retail loan originations reached $28.2 billion, compared with $27.9 billion during the corresponding period in 2025. This represents an increase of approximately 1.1%.
The difference between quarterly and year-to-date growth suggests that retail originations accelerated on a year-over-year basis during the third quarter. However, the figures alone do not establish whether the increase resulted from higher vehicle sales, changes in financing penetration, customer demand, average loan sizes, or other factors.
Retail automotive financing allows customers to purchase vehicles through loans that are repaid over an agreed period. GM Financial’s retail lending activity therefore plays a role in supporting vehicle purchases and providing financing options for eligible customers.
Growth in retail originations can expand the company’s finance receivables and future interest income. At the same time, new lending exposes the company to repayment risks, making underwriting standards, borrower affordability, and portfolio monitoring important considerations.
Outstanding Retail Finance Receivables Increase
GM Financial’s outstanding retail finance receivables reached $76.7 billion as of September 30, 2026.
The balance was higher than the $76.1 billion reported at June 30, 2026, and the $75.9 billion recorded at September 30, 2025. The year-over-year increase was approximately 1.1%, while the balance grew by approximately 0.8% compared with the previous quarter.
The increase in outstanding retail finance receivables is consistent with the company’s higher year-over-year retail loan originations. However, the outstanding balance also reflects repayments, loan maturities, account activity, and other portfolio movements.
A larger finance receivables portfolio can provide opportunities to generate additional interest income. Nevertheless, the financial contribution of that portfolio depends on factors such as the interest rates charged to borrowers, the cost of funding the loans, and the level of credit losses.
GM Financial’s ability to maintain portfolio quality while expanding retail financing will remain an important consideration for investors and other industry participants reviewing its financial performance.
Operating Lease Originations Decline
GM Financial’s operating lease business experienced a reduction in originations during the third quarter of 2026.
Operating lease originations totaled $3.7 billion for the quarter ended September 30, 2026. This compared with $4.1 billion in the second quarter of 2026 and $5.0 billion in the third quarter of 2025.
The latest quarterly figure represents a decrease of approximately 26% compared with the same period in 2025. It also reflects a decline of approximately 9.8% from the preceding quarter.
For the first nine months of 2026, operating lease originations totaled $11.9 billion, down from $15.3 billion during the first nine months of 2025. This represents a year-over-year decrease of approximately 22.2%.
Operating leases are an important component of automotive financing because they allow customers to use vehicles for a specified period under agreed contractual terms. Depending on the agreement, customers generally return the vehicle at the end of the lease rather than purchasing it through a conventional vehicle loan.
Lease originations can be affected by vehicle availability, customer preferences, leasing incentives, vehicle pricing, interest rates, and the relative attractiveness of leasing compared with financing a purchase.
The reported figures show that GM Financial originated a lower value of operating leases during the first nine months of 2026. However, the available information does not identify the specific factors behind the reduction.
Leased Vehicle Assets Continue to Decrease
The net value of GM Financial’s leased vehicles stood at $32.2 billion on September 30, 2026.
This was below the $32.9 billion reported at June 30, 2026, and the $33.6 billion recorded on September 30, 2025. The balance declined by approximately 4.2% year over year and 2.1% compared with the previous quarter.
The decline in leased vehicle assets occurred alongside lower operating lease originations. However, changes in the net value of leased vehicles can also reflect vehicles reaching the end of their lease terms, depreciation, vehicle disposals, and other portfolio movements.
For automotive leasing businesses, the value of vehicles at the end of their lease periods is an important consideration. Vehicles returned at lease maturity may be sold through wholesale or retail channels, depending on the company’s operating arrangements.
The proceeds received from selling returned vehicles can affect the economics of leasing contracts. If vehicles retain more value than expected, lease performance may benefit. Conversely, weaker used-vehicle prices can reduce resale proceeds and place pressure on profitability.
The reported leased vehicle balance does not, by itself, reveal the company’s expected residual values or the gains and losses associated with vehicle remarketing. Those details would be needed to assess the performance of the leasing business more comprehensively.
Commercial Finance Receivables Reach $18 Billion
GM Financial’s commercial finance receivables increased to $18.0 billion as of September 30, 2026.
The balance compared with $16.5 billion at June 30, 2026, and $17.1 billion at September 30, 2025.
On a year-over-year basis, commercial finance receivables increased by approximately 5.3%. Compared with the previous quarter, the balance rose by approximately 9.1%.
Commercial financing supports business-related automotive activities and can provide funding to eligible commercial customers within the company’s financing operations. The portfolio’s performance depends on customer demand, financing requirements, repayment behavior, and the company’s risk management practices.
The increase in commercial finance receivables indicates that the outstanding balance of this portfolio expanded during the reporting period. However, the figures provided do not specify the types of commercial borrowers or transactions responsible for the growth.
Monitoring commercial receivables is important because changes in the portfolio can influence funding requirements, credit exposure, and overall asset quality.
Retail Loan Delinquencies Increase
GM Financial reported higher retail finance delinquency rates at the end of the third quarter of 2026 compared with the same period in 2025.
Retail finance receivables that were 31 to 60 days delinquent accounted for 2.6% of the portfolio as of September 30, 2026. This compared with 2.3% on September 30, 2025.
The increase was 0.3 percentage points year over year.
Accounts more than 60 days delinquent represented 1.0% of the retail finance portfolio at the end of the third quarter of 2026, compared with 0.9% a year earlier. This was an increase of 0.1 percentage points.
Delinquency rates measure the proportion of loans for which borrowers have fallen behind on scheduled payments. These indicators help finance companies assess the condition of their loan portfolios and identify potential credit risks.
An increase in delinquency rates does not necessarily mean that every overdue account will ultimately result in a loss. Some borrowers may bring their accounts current, while others may continue to experience repayment difficulties.
Nevertheless, rising delinquencies can signal pressure on household finances and may precede higher credit losses if borrowers are unable to resume payments.
For GM Financial, continued monitoring of payment behavior, borrower affordability, collections, and loan performance will be important as the company manages its retail portfolio.
Annualized Net Charge-Offs Rise
GM Financial’s annualized net charge-offs also increased during the third quarter of 2026.
Annualized net charge-offs were 1.6% of average retail finance receivables for the quarter ended September 30, 2026, compared with 1.2% for the third quarter of 2025. This represents an increase of 0.4 percentage points.
For the first nine months of 2026, annualized retail net charge-offs were 1.5%, compared with 1.2% during the corresponding period in 2025. The year-to-date rate therefore increased by 0.3 percentage points.
Net charge-offs generally represent loan balances written off as uncollectible after accounting for recoveries. The annualized rate expresses these losses relative to average retail finance receivables over a specified period.
Higher charge-off rates can place pressure on earnings because they reflect losses associated with borrowers who have not repaid their obligations in full. They can also influence the amount of credit-loss provisions a lender needs to maintain.
The increase in both delinquency rates and net charge-offs indicates that credit performance warrants attention. However, the figures provided do not establish whether the trend will continue in future quarters.
The company’s future credit performance will depend on factors including borrower repayment capacity, economic conditions, vehicle values, underwriting standards, and collection outcomes.
GM Financial Maintains $28 Billion in Available Liquidity
Despite the decline in reported net income, GM Financial maintained total available liquidity of $28.0 billion as of September 30, 2026.
The liquidity position consisted of several sources of cash and borrowing capacity:
- Cash, cash equivalents, and marketable debt securities: $4.7 billion.
- Borrowing capacity under secured credit facilities: $19.1 billion.
- Borrowing capacity under committed unsecured credit facilities: $1.2 billion.
- Borrowing capacity under the Junior Subordinated Revolving Credit Facility from General Motors: $1.0 billion.
- Borrowing capacity under the GM Revolving 364-Day Credit Facility: $2.0 billion.
Together, these resources accounted for the company’s reported $28.0 billion in total available liquidity.
Liquidity is particularly important for automotive finance companies because they need to fund new loans, support lease operations, meet financial obligations, and manage changes in capital market conditions.
The $4.7 billion in cash, cash equivalents, and marketable debt securities represents liquid assets, while the remaining amount primarily consists of available borrowing capacity under the listed credit facilities.
Access to multiple funding sources can help a finance company manage its short-term funding needs and reduce reliance on any single facility. However, available borrowing capacity should not be interpreted as cash already held by the company, and its use remains subject to the relevant facility terms and conditions.
GM Financial’s reported liquidity provides a significant pool of available financial resources to support its operations. The company’s ability to maintain access to funding will remain important as it manages its lending portfolio and responds to changing credit conditions.
GM Financial’s Financial Performance
GM Financial’s third-quarter 2026 results present a mixed picture of growth, profitability, and credit performance.
Retail loan originations increased compared with the third quarter of 2025, while outstanding retail finance receivables also grew. Commercial finance receivables expanded on both a quarterly and year-over-year basis.
At the same time, operating lease originations declined, and the net value of leased vehicles decreased. Net income fell compared with the prior-year quarter, while retail delinquency rates and annualized net charge-offs increased.
These trends highlight several areas that will be important when assessing the company’s performance in subsequent reporting periods. Retail lending growth may support the expansion of finance receivables, but its contribution to earnings will depend on lending economics and credit quality. The performance of the leasing business will depend partly on originations, lease maturities, vehicle depreciation, and resale values.
Credit quality will also remain an important consideration. Rising delinquency and charge-off rates can affect profitability if they lead to greater losses or higher credit-loss provisions. The company’s substantial liquidity provides funding flexibility, but liquidity alone does not determine future earnings or eliminate credit risk.
Further information about financing margins, borrowing costs, credit-loss provisions, operating expenses, and vehicle remarketing performance would help explain the factors behind the reported decline in net income
GM Financial reported $487 million in net income for the third quarter of 2026, compared with $589 million in the same quarter of 2025. Net income for the first nine months of 2026 reached $1.4 billion, down from $1.6 billion a year earlier.
Retail loan originations showed year-over-year growth, and commercial finance receivables increased. However, operating lease originations declined, while retail delinquencies and annualized net charge-offs moved higher.
The company ended September 2026 with $28.0 billion in total available liquidity, including cash and marketable debt securities as well as borrowing capacity under several credit facilities.
Going forward, GM Financial’s performance will depend on its ability to sustain financing activity, manage funding requirements, maintain credit quality, and navigate changes in the automotive market. Its next financial reports will provide further insight into whether retail lending growth can offset pressures from credit losses, leasing activity, and other factors affecting profitability.
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